Express Q2 income up 25%; to open flagships in Times Square and San Francisco
Columbus, Ohio — Express Inc. reported a 25% increase in net income for the second quarter. But the retailer slashed its profit outlook for the year and said that same-store sales barely rose last quarter and that it expects about the same for the rest of the year.
Express earned $15.8 million for the quarter ended July 28, better than analysts expected, compared with $12.6 million in the year-ago period.
Revenue increased 2% to $454.9 million, short of the $467 million analysts had expected. Same-store sales inched up 1%.
Express, which expects to end 2012 with 625 stores in the United States, Puerto Rico and Canada, said it will open flagship stores in Times Square in New York and Union Square in San Francisco. The company also said it has signed its third international franchise agreement, this one in Mexico.
“We expect these flagship locations, scheduled to open by the fall of 2013, to serve as international gateways for our brand,” stated Michael Weiss, chairman, president, and CEO, Express.
Cabela’s to enter Virginia and Delaware in 2014
Sidney, Neb. — Cabela’s Inc. announced today plans for two new stores, including its first-ever locations in Virginia and Delaware. Construction is expected to begin on the new locations in 2013, with the stores expected to open in 2014.
Cabela’s said it will build an 85,000-sq.-ft. store in The Falls, a new retail development in Bristol, Va., that will accommodate about 1.5 million sq. ft. of retail space.
In Delaware, the company will open a 100,000-sq.-ft. store adjacent to Christiana Mall, in Christiana.
The stores will be built in Cabela’s trademark style with an exterior of log construction, stonework, wood siding and metal roofing.
The interior will highlight Cabela’s next-generation layout, which is designed to maximize product assortment and availability while surrounding customers in the outdoor experience with wildlife and outdoor memorabilia displays. It will feature thousands of quality outdoor products, museum-quality animal mounts, a Gun Library, Bargain Cave and Fudge Shop, as well as other unique features.
Currently, Cabela’s operates 38 stores across the United States and Canada. The company will open stores in Rogers, Ark., and Union Gap, Wash., on Aug. 30 and Oct. 4, respectively. It has announced plans to open seven stores in 2013: Saginaw, Mich.; Columbus, Ohio; Grandville, Mich.; Louisville, Ky.; Green Bay, Wis.; Thornton, Colo.; and Lone Tree, Colo.
Cabela’s also has announced plans to open a store in Anchorage, Alaska, in 2014.
RILA announces opposition to ‘flawed’ proposed swipe fee settlement
Arlington, Va. — The Retail Industry Leaders Association criticized the proposed swipe fee settlement and urged class plaintiffs to reject the proposal. Announced in July, the proposed settlement stems from lawsuits challenging the anticompetitive swipe fee practices of Visa and MasterCard.
“While Visa and MasterCard’s decision to pursue a settlement affirms the legitimacy of retailers’ claims, the flawed proposal upholds the networks’ anticompetitive practices and fails to provide retailers and their consumers with meaningful relief from tens of billions of dollars in hidden fees,” said RILA President Sandy Kennedy. “We urge class plaintiffs to reject the proposal and send a clear message that a settlement that fails to engender competition and fix the broken electronic payments market is unacceptable.”
If the proposed settlement is ultimately approved, all retailers will be bound by its terms, RILA said. Among the many proposed terms that concern retailers is the release of Visa and MasterCard from any future legal claims related to their interchange practices and terms that could stifle emerging innovations, such as mobile payments.
“Retailers are concerned that in addition to limiting their future legal options, the proposed settlement preserves the Visa/MasterCard duopoly and constrains emerging innovations that could bring meaningful competition to the marketplace,” added Kennedy.